Commissioner Darr opened the meeting and thanked everyone for attending.

Mr. Eck made a motion to accept the minutes of the last meeting of June
25, 1999. Mr. Reagan seconded the motion. The motion was unanimously
approved.

Mr. Art Appl, Director, International Division,
reported that there are 28 foreign banking offices representing 12 countries
in Chicago. He also reported that there are 43 representative offices.
Mr. Appl reported that with the exception of one “3” rated
bank, all offices are rated satisfactory or higher. There were two enforcement
actions issued in the past year. A trend of continued reduction in offices
was noted resulting from downsizing and mergers. Currently seeing much
more emphasis on regulator cooperation on a global basis.

Mr. Russ Curry, Director of Commercial Bank
Supervision – Springfield, stated that the farm community banks
look pretty good right now. There are 2 types of information actions;
both are a resolution for corrective action.

Mr. John Eck stated that downstate community
bankers are very conservative. John would like to have an overall composite
rating done bureau wide and not by Division.

Mr. Robert Burke, Director of Commercial Bank
Supervision – Chicago, reported that there are 165 banks assigned
to the Chicago Division of Commercial Bank Supervision. Those banks have
assets that total approximately $80 billion. He summarized the overall
condition of the banks assigned to the division and stated that the division
has spent a considerable amount of personnel resources to supervise two
problem banks.

Mr. Marc Edwards, Policy and Procedures Administrator,
reported on corporate activity through June 30, 2000 and two proposed
policy changes.

Mr. Gary Joyner, Assistant Director of Specialized
Activities, discussed how the “Specialized Activities Division”
is organized. Gary pointed out that currently there are 12 examiners in
the “Fiduciary Activities Section” and 12 examiners in the
“Information Systems Section”.

Gary also covered the examination requirements for both the Fiduciary
and Information Systems area.

Gary reported that we have revealed our first “Internet Only”
bank application. After discussion some of the members stated this might
be a good item to put on the agenda for “A Day with the Commissioner:
to find out what all is involved with an “Internet Only Bank”.

Michael Morehead, Chief Counsel, provided the
Banking Board with a brief summary of the legal interpretive letters issued
since January 1, 2000.

Scott Clarke said that Cash Station was purchased
by a company called Concord and that you may exchange Cash Station for
Concord.

Mr. Clarke reported that e-mail notification
service should be provided to all subscribers. For those people who do
not have access to the Internet, service will be made public to all current
banks on a fax and demand service system; free of charge; with a toll
free number. All corporate activities will be provided and people will
be informed right away.

All Field Service Examiners laptops will be replaced right after January,
2001.

The Commissioner took possession and control of Independent Trust Corporation
on April 14, 2000. The trust company had $2.1 billion in trust assets
and had $68.1 million of trust funds misappropriated. This is the first
failure of a trust company since 1934. PriceWaterhouseCoopers was selected
as the receiver for the failed trust company. The company had 17,500 customers
of which 3,000 customers were from Illinois. The customers may suffer
a loss of 8.6 percent.

Commissioner Darr reported on Predatory Lending.
On August 16, 2000, Commissioner Darr will be attending a meeting with
the FDIC and with the Joint Committee on Administrative Rules (JCAR) concerning
the adjusting of thresholds for loan default rates.

NOTE:

It was the consensus of the board to schedule the next meeting in Chicago,
on a Tuesday or Wednesday, during the later part of October or early November
prior to the upcoming holidays. Several dates will be forwarded to members
to choose from.

Mr. Lee J. Plummer made
a motion to adjourn. The motion was seconded by Commissioner Darr and
was unanimously approved. The meeting adjourned at 2:05 p.m.